WhiteHawk Energy Acquires PHX Minerals for $187 Million

News Summary

WhiteHawk Energy has announced its acquisition of PHX Minerals, a significant player in the natural gas and oil market, for $187 million in cash. Shareholders of PHX will benefit from a premium of 21.8% per share, with a cash payout of $4.35 per share. This acquisition will increase WhiteHawk’s footprint to over 3.1 million acres, bolstering their presence in the Haynesville Shale region and diversifying into Oklahoma. The deal highlights a pivotal moment for WhiteHawk as it strategically positions itself within the booming energy sector.

Exciting News from Philadelphia: WhiteHawk Energy’s Big Acquisition!

In a bold move that’s set to shake things up in the energy sector, WhiteHawk Energy, a Philadelphia-based company, has decided to acquire PHX Minerals, a well-regarded player in the natural gas and oil mineral market. This exciting deal is worth a whopping $187 million in cash!

What This Means for Shareholders

For the shareholders of PHX Minerals, this acquisition is a sweet deal. They’ll receive $4.35 per share in cash, which is a delightful 21.8% premium over the stock’s closing price from May 7. Not only that, but it’s also a remarkable 23.9% premium compared to the share price right before WhiteHawk proposed this acquisition back on October 14, 2024. Talk about a win-win situation for stockholders!

Expanding Horizons

With this acquisition, WhiteHawk isn’t just making a statement; it’s set to make its presence felt! They will be adding around 1.8 million gross unit acres of mineral and royalty assets focused on natural gas. This expansion will significantly boost WhiteHawk’s footprint in the Haynesville Shale region located in East Texas and North Louisiana. But that’s not all; they’re also diversifying into the SCOOP/STACK shale region in Oklahoma. This move positions them to better leverage the booming energy market.

Growing Their Footprint

Once the acquisition is finalized, WhiteHawk’s total gross unit acre footprint is projected to grow to over 3.1 million acres. This impressive footprint will include cash flow from approximately 10,163 producing wells—that’s a lot of energy! PHX’s existing assets promise to enhance WhiteHawk’s operations even more, thanks to the backing of over 6,500 producing wells and a significant amount of undeveloped inventory.

A Crucial Milestone

This acquisition is more than just a business transaction; it’s described as a crucial milestone for WhiteHawk. It more than doubles their gross unit acre footprint and boosts their production capacity within established natural gas basins. The excitement among industry insiders is palpable as they anticipate the positive impact this will have on WhiteHawk’s overall operations.

Closing Matters

Once the transaction wraps up, it’s important to note that PHX will be delisted from the New York Stock Exchange. The deal is expected to close in the early part of the third quarter of 2025, though it will be dependent on standard closing conditions and approvals.

Looking Ahead

As WhiteHawk Energy and PHX Minerals work toward a seamless transition, all eyes will be on how this acquisition reshapes the landscape of the natural gas and oil markets. With growing demand and an ever-evolving industry, this move might just be what both companies need to keep on thriving. Energy enthusiasts and investors alike should stay tuned for updates on this developing story!

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Author: HERE Houston Tx

HERE Houston Tx

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